Spanish Bank

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In spite of the measures taken by Reserve Bank to arrest the declining value of rupee against the dollar, the Indian currency reacted downwards by 18 paise to 53.60 against the American currency in the late morning trade. Fresh demand for dollars from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the US unit, a forex dealer said. The rupee resumed lower at 53.49/50 per dollar at the Interbank Foreign Exchange (Forex)

NEW YORK: Mergers and acquisitions among banks are expected to continue at a rapid pace amid ongoing financial sector turmoil, but these deals are likely to be struck at lower prices than combinations made during better economic times. "Previously, the seller was coming from a position of strength. Now, it's from a position of weakness," said Octavio Marenzi, head of the consulting firm Celent. High premiums paid to acquire banks are likely a thing of the past, replaced by discount prices, he said.

By: Bharat Wariavwalla Pain and more pain awaits Greece, whether it stays in or leaves the eurozone. Greek voters have given a wafer-thin majority to the party, New Democracy, that wants to keep Greece in the eurozone. In the first round of the election on May 6, voters did not give a decisive vote, though they voted for parties that promised the moon. Thus, in the first round the extreme left party, Syriza, promised pensions would equal first pay and the right-wing Golden Dawn party told the people that it was the monster, the EU, that was responsible for their misfortune.

In an interview with ET Now, Adrian Foster, Financial Head of Research, Rabobank , gives his views on the Greek situation ahead of polls and S&P's alert on India's investment grade. Excerpts: ET Now: What do you make of the Greek situation ahead of the election and the Spanish bailout news as well that came about and much talked about as well? Adrian Foster: Very interesting, I think across the Euro 2012 the European Cup is all at the moment and I actually think that on Sunday when of course the Greek election is held, there will be a lot of people with split screens watching both the events -- the Euro Cup and the Greek election.

MADRID: Spanish financial institutions are having increasing problems in borrowing from foreign banks because of concerns about Spanish sovereign debt, the Expansion daily reported on Thursday. The newspaper based its report on unnamed sources in several Spanish financial institutions to the effect that foreign banks were increasingly reluctant to lend to Spanish banks. Local press also followed up a report in The Wall Street Journal that one of the leading Spanish banks, BBVA, had been trying unsuccessfully for a month to refinance one billion dollars (815 million euros)

MADRID/LONDON: Spain's banks may struggle to refinance about 85 billion euro ($111 billion) in debt next year as costs surge on concern continental Europe's fourth-biggest economy may need an Irish-style bailout. "There's a universal dumping of Spain going on," said Andrea Williams, who helps manage about 623 million pound ($968 million), including shares in Banco Santander, at Royal London Asset Management. "The fear is that Portugal, Spain and Italy are now in line after what happened in Ireland.

NEW DELHI: What began as small investments in stocks about 10 years ago, has pushed once small-time investor Ramchand Bhavnani to an enviable position today where he can decide fate of Spain's fifth largest bank Bankinter. Continuing with purchase of shares in Bankinter over the years, India born Bhavnani -- an unknown name till a few years ago -- has raised his holding to over 14 per cent. His rise, which also earned him a director seat on Bankinter board in 2005, holds even more significance as Spain is a country where large businesses are mostly owned by powerful families and an intricate network of cross-holdings.

MADRID: Fitch Ratings, citing the potential of loans at some lenders to deteriorate, cut its credit ratings on 18 Spanish banks, including Bankia , after its downgrade of Spain last week. Bankia's long-term issuer default rating was cut to BBB from BBB+ with a negative outlook, the ratings company said in an e-mailed statement on Tuesday. CaixaBank was reduced to BBB from A-, Banco Sabadell to BBB from BBB+ and Banco Popular Espanol to BBB- from BBB, Fitch said.

MADRID: All eight major Spanish banks that underwent stress tests to see if they could cope with worsened economic conditions passed, but five of the 19 regional lenders known as 'cajas' that were tested failed, Spanish media reported Friday. Top-selling daily El Pais, which said it had access to results of the tests that were to be published later on Friday, said the exercise revealed that the eight banks "have enough capital to surpass the most difficult situations.

BERLIN: The eurozone nations have sealed a deal to provide rescue loans up to 100 billion euros ($122 billion) to Spain's ailing banks amid speculation that debt-laden Spanish government may also eventually seek a bailout. Finance Ministers of the 17-nation euro group finalised the details of a financial support for Spanish banks in a video conference on Friday, a day after the German parliament endorsed the rescue plan with a large majority. They shared the view that "providing a loan to Spain for the purpose of recapitalisation of financial institutions is warranted to safeguard the stability of the euro area as a whole," Luxembourg's Prime Minister and president of the euro group Jean-Claude Juncker said after their conference.